Indian Chem 2018
Indian Agrochemical Market
Scenario and opportunities
Mr. Harsh Dhanuka
Vice President,
Dhanuka Agritech Ltd.
1 CONTENTS
India - Country Of Vast Opportunity
Indian Agriculture
Global Outlook
Indian Agrochemicals Market
Government Thrust and Support
2 CONTENTS
India - Country Of Vast Opportunity
Indian Agriculture
Global Outlook
Indian Agrochemicals Market
Government Thrust and Support
3
INDIA – COUNTRY OF VAST
OPPORTUNITY
RURAL
TOTAL LAND POPULATION POPULATION
329 Mil Ha 1.34 25%
Billion
7th LARGEST IN
WORLD WORLD’S RURAL
2nd LARGEST
POPULATION IN
INDIA
156 Mil Ha 1.7%
EXPECTED TO BE MOST
WORLD’S 2nd POPULATED IN NEXT
LARGEST 10 YRS
TOTAL ARABLE POPULATION
LAND GROWTH
All these are strong demand drivers for Agricultural products
Source: FAOSTAT (as on 26.12.2016), World Bank data
4 Largest country
by total area
with 2.4% share
of world’s land
Largest
Agriculture
area with 11%
share of the
total arable
land of world
Source: FAOSTAT (as on 26.12.2016)
5
Highest Population in the world with 17.6%
share of world population
Highest number of people living in Rural areas
with 25.6% share of world’s rural population
of total population is directly dependent on
agriculture
Source: FAOSTAT (as on 26.12.2016)
6 CONTENTS
India - Country Of Vast Opportunity
Indian Agriculture
Global Outlook
Indian Agrochemicals Market
Government Thrust and Support
WORLD POPULATION VS ARABLE LAND
7
World population is
expected to reach
more than 9 billion
by 2050 from 2.5
billion in 1950.
However world
arable land is
reducing continuously
from 0.52 ha per
person to 0.2 ha per
person which is a
matter of concern.
We have to increase global average productivity to feed rising population
AGRICULTURE VALUE /WORKER VS % GDP
8 70000 66,236 40
63,269
60000 35 % GDP
US$
49,723 30
50000 46,045
25
40000 36,625
20
30000 27,240
15
20000
10
9,674
10000 5
476 495 527 688 876 1,018 1,166
0 0
Agriculture $ added/ worker % GDP
Low value for India due to small farm holdings and low productivity
Agriculture value added per worker is a measure of agricultural productivity. Value added in agriculture measures
the output of the agricultural sector
Agriculture (% GDP) includes forestry, hunting, and fishing, as well as cultivation of crops and livestock production.
Source: http://data.worldbank.org/indicator/NV.AGR.TOTL.ZS
MARKET PERFORMANCE 2017
9
Crop Protection – Brazil surpassing the USA
as No 1 market in 2017 Key changes
CP sales in 2017 by country (in US$ m)
• Brazilian CP market
9,000
8,000
increased by 14% and
7,000 takes the No.1 spot
6,000 from the USA
5,000 • India surpassed
4,000
Argentina and France
3,000
in market value as those
2,000
1,000
markets declined and
0
India grew
Global CP sales 54,150 US$ m in 2017.
India has emerged as 5th largest in Domestic CP Market
Kleffmann Group ©2018
CROP PROTECTION MARKET TRENDS
10
Pesticide sourcing compared – India vs. China 2010 - 2016
Value of exported pesticides (in US$ m)
There is growing
9,000 trend of sourcing
8,000
7,000
both formulated
6,000 product and
5,000 technical material
4,000
3,000
from India
2,000
1,000
0
2010 2011 2012 2013 2014 2015 2016
Pesticides sourced out of China Pesticides sourced out of India
As China relook into their regulatory and environment laws, India
can emerge as the main sourcing country for Crop Protection products
INDIA : GLOBAL PERSPECTIVE
Good
11
• Fastest growing economy
• 4th largest producer of crop protection chemicals
globally.
• Robust regulatory system in place
• Per-capita consumption of chemicals is still lower.
Opportunity to Grow
• Increasing population, decreasing per capita availability
of arable land & focus on increasing agricultural yield.
• Pool of scientific talent ; strong R&D capabilities
• Strong manufacturing skills
Suggested improvements
• Improve enforcement and stewardship
• Incentive for bringing in new products/innovation-
Encourage RD
• Ease of doing business
India Can become major sourcing hub for Crop Protection products
12 CONTENTS
India - Country Of Vast Opportunity
Indian Agriculture
Global Outlook
Indian Agrochemicals Market
Government Thrust and Support
13
In world, India accounts for 7.68% of global
agricultural output
per hectare productivity is very low at 3 MT
per hectare vs world average of 4 MT per
hectare due to lack of scientific methods of
agriculture
INDIAN AGRICULTURE
Source: FAOSTAT (as on 26.12.2016)
14 CROP DIVERSITY
Fruits &
Rice Cotton Pulses
Vegetables
Sugarcane Soybean Tea Wheat
Onion Potatoes Grapes Pomegranate
Groundnut Jute Mustard Citrus
India grows the highest number of crops in the world
15
AGRICULTURAL PRODUCTIVITY IN
INDIA
GLOBAL INDIA GAP IN
AREA
CROP PRODUCTIVITY PRODUCTIVITY PRODUCTIVITY
RANK (%)
(MT / HA) (MT / HA)
Cotton 1 1.34 0.96 28
Soybean 5 2.4 1.1 54
Rice 1 5.0 3.0 40
Sugarcane 2 70.6 70.4 0.3
Maize 4 5.6 2.6 54
Tomato 3 28.0 19.6 30
Potato 3 18.0 19.9 -11
Groundnut 1 1.3 0.9 31
Onion 2 19.4 16.1 17
Pulses 1 9.9 6.6 33
Opportunity to help farmer to Grow More and Grow Better
Source: FAOSTAT (as on 26.12.2016), agricoop.gov.in
16 INDIAN AGRICULTURE
OTHERS
12%
WEEDS
37%
DISEASES
22%
INSECTS
29%
Losses in Indian Agriculture amount to USD
50 Billion, i.e.,12.46% of Total Agricultural
output – USD 401.3 Billion.
Source: World Bank national accounts data, agricoop.nic.in
17 CONTENTS
India - Country Of Vast Opportunity
Indian Agriculture
Global Outlook
Indian Agrochemicals Market
Government Thrust and Support
18 INDIAN AGROCHEMICALS MARKET
$ Domestic Market Size of India @72 INR per
USD
Brazil market size is 5 times the market size of
India
Brazil’s agricultural area in comparison to
India (Higher consumption of Agrochemicals)
There is huge opportunity for Indian market to
grow fast with expected CAGR - 8%
Source: World Bank national accounts data, TSMG report
19 INDIAN AGROCHEMICALS MARKET
EXPECTED MARKET SIZE IN BILLION
USD @8% CAGR
3.7
3.4
3.1
2.9
2.7
2.5
2017 2018 2019 2020 2021 2022
20 SEGMENT DIVISION – WORLD – INDIA
International Segment wise Share Indian Segment wise Share
Others
Insecticides Others
3% 4%
27% Herbicides
20%
Herbicides Insecticides
43% 50%
Fungicides
Fungicides 26%
27%
Highest Crop losses due to weeds (37% share) and very low
usage of herbicides (20% share)
21
Indian Agrochemical – Value - Export - Import
VALUE IMPORT –
Net Export
13150
EXPORT
11269
10000 8244
9852
9747
7362
6492 6006
7946
5310
5000
4906
3907
3741
3360
2636
0
2012-13 2013-14 2014-15 2015-16 2016-17
Net Export (In Crore)
2012- 2013- 2014- 2015- 2016-
13 14 15 16 17
Net Export of agrochemicals
Export of agrochemicals continuously increasing and
(Technical and formulations) acting as an export driver.
is very high compared to
Import resulting into TRADE The Export of agrochemicals is
SURPLUS. playing a significant role to
counter trade deficit in Chemicals
Sector.
Source: Ministry of Chemical & Fertilizer, GOI
22 REQUIREMENT OF INDIAN
AGROCHEMICAL INDUSTRY
Newer and Safer products
Integrated Agrochemical Plants
Export Oriented Plants
Fast Registration of New Technology
23 CONTENTS
India - Country Of Vast Opportunity
Indian Agriculture
Global Outlook
Indian Agrochemicals Market
Government Thrust and Support
24 GOVERNMENT THRUST ON
AGRICULTURE
Source: Ministry of Agriculture and Farmers Welfare
25 GOVERNMENT THRUST ON
AGRICULTURE IN INDIA
Source: CNBC TV 18 News report
26 GOVERNMENT THRUST ON
AGRICULTURE IN INDIA
Crop
Insurance
Scheme for
farmers
Credit
Facilities for
Farmers
Source: india.gov.in
27 EASE OF DOING BUSINESS
Infrastructure Development
Defined Chemical Zones and Special
Economic Zones are available
Make in India – to benefit companies
setting up their facilities in India
28 EASE OF DOING BUSINESS
29 INDIAN MARKET OPPORTUNITY
Opportunity to establish new
chemical plant in India
Availability of Qualified and
skilled manpower at reasonable
cost
We invite you to come to India
for your business expansion and
growth
30 CONCLUSION
India has vast opportunity available due to its
population and high dependence on agriculture
India is 2nd highest in agricultural production globally,
but per hectare productivity is low
Indian agrochemical market has high potential to
grow for both domestic consumption as well as for
exports
Tremendous support from government for agriculture
and for supporting business in India
Favorable environment for agrochemical companies
to set up operation in India and bring, new safer
chemistry to Indian market
Thank You
